SpareBank 1 Helgeland · OSL:HELG
SpareBank 1 Helgeland — Helgeland Sparebank — Q1 2015 Earnings Presentation
49 slides from SpareBank 1 Helgeland's earnings presentation, 2015
Slide 1: Presentation 1. quarter 2015
Presentation 1. quarter 2015 11 En drivkraft for vekst på Helgeland
Slide 2: Presentation Q1 2015 (HSB group)
Presentation Q1 2015 (HSB group) Main Features Lisbeth Flågeng Profit & Loss Chief Executive Officer Balance Lending Deposits Sverre Klausen Funding Chief Financial Officer Solidity Summary Helgeland Appendices 2 En drivkraft for vekst på Helgeland
Slide 3: Main Features
Main Features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 3 En drivkraft for vekst på Helgeland
Slide 4: Main features 1. Quarter
Main features 1. Quarter Result Gross profit MNOK 71 (66) – Improvement of MNOK 5 • Maintained net interest in NOK and percent • Low write-downs on lending Profitability Increased ROE (after tax) 10,2 (9,9) % Solidity Strengthened capital adequacy – CET1 ratio 14,6 (12,2) % – total capital ratio 18,
Slide 5: Main features 1st quarter
Main features 1st quarter Lending 3-month growth 1,0 (0,2) % • Retail market 1,2 (0,1) % • Corporate market 0,6 (0,4) % Deposits 3-month growth 1,7 (0,9) % – good deposit ratio 66,3 (63,1) % • Retail market 2,0 (0,6) % • Corporate market 1,1 (1,2) % 5 En drivkraft for vekst på Helgeland
Slide 6: Main features 1st quarter
Main features 1st quarter New real estate agency Four local real estate agencies in Helgeland are merging. Helgeland Sparebank will own 40%. The new company will have a market share in over 50 %. New chairman CEO in Helgeland Kraft AS, Ove Brattbakk (59), has taken over after Thore Michalsen that st
Slide 7: Profit & Loss
Main features Profit & Loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 7 En drivkraft for vekst på Helgeland
Slide 8: Result
Result Profit development (mnok) Good result 400 Stabile net interest • Reduction of mortgage interest rates is covered 283 300 266 through reduction of deposit interest rates and lower deposit costs 200 172 133 100 Engangs- 51 66 71 40 42 effekt 0 45 2011 2012 2013 2014 Q1/2015 First quarter Profit
Slide 9: Result
Result Profit development (mnok) Good result so far this year 400 50% Stabile net interest 45% • Reduction of mortgage 40% interest rates is covered 300 283 266 through reduction of deposit 35% interest rates and lower 30% deposit costs 200 172 25% 133 20% ROE 10,4 % 10,5 % 15% • Target minimum 10 %
Slide 10: Key figures
Key figures Keyfigures in % of average BTA Commentary 2% Net interest • Unchanged last five quarters Net comissions • 0,33 % - increase last quarter • partly one time payout 1% 0% 2011 2012 2013 2014 Q1/2015 Gross profit Net interest Net provisions 10 En drivkraft for vekst på Helgeland
Slide 11: Key figures
Key figures Keyfigures in % of average BTA Commentary 2% Net interest • Unchanged last five quarters Net commissions • 0,33 % - increase last quarter • partly one time payout 1% Operating costs • weak increase since 2013 Losses on lending • low level this quarter 0% 2011 2012 2013 2014 Q1/2015 Gross
Slide 12: Profit & loss
Profit & loss Helgeland Sparebank (group) Profit & loss (MNOK) Q1/2014 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Net interest- and credit provision earnings 113 114 116 115 112 Net provision earnings 19 22 22 19 21 Other operatios income 1 1 2 3 2 Ordinary operations cost 62 61 63 77 67 Result basic operation
Slide 13: Net interest
Net interest Development net intr.(mnok.) and % of average Commentary BTA 150 Stable net interest. Still strong competition 113 114 116 115 112 regarding price. • Last reduction of the 100 mortgage interest rate was conducted 15.03.15, 1,76 % covered through reduction 1,75 % 1,75 % 1,75 % 1,74 % of
Slide 14: Operating cost
Operating cost Development operating cost (mnok) and % of commentary income 100 Reduced costs since Q4 • Annual positions reduced 77 from 177 31.03.14 till 167 75 67 31.03.15 63 62 61 • Cash service at desks terminated 50 57,0 % • Natural resignations that are 44,6 % 48,2 % 38,1 % 40,1 % not replace
Slide 15: Balance
Main features Profit & loss Balance lending Deposits Funding Solidity Summary Helgeland Appendices 15 En drivkraft for vekst på Helgeland
Slide 16: Total assets
Total assets BTA whereby lending and deposits (MNOK) Commentary 30.000 Adapted Liquidity reserve 25.985 25.738 25.538 24.594 22.802 21.040 Lending • Q1 21,0 (20,7) bn. 20.000 • 12-mont growth MNOK 283 13.952 Deposits • Q1 13,9 (13,1) bn. • 12. month growth MNOK 852 10.000 0 2011 2012 2013 2014 Q1/20
Slide 17: Lending
Main Features Profit & loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 17 En drivkraft for vekst på Helgeland
Slide 18: Credit growth
Credit growth 12-month credit growth Commentary 20% Lending growth RM 67,3 % CM Helgeland Norway 15,9 • 12-month growth 1,4 (3,3) % 32,7 % 84,0 % 15% % RM Share • Goal minimum 60 % 10% • Per Q1 67,3 (65,5) % 5% Share in Helgeland region • Per Q1 84,0 (83,7) % 0% -5% 2011 2012 2013 2014 Q1/2015 HSB H
Slide 19: Credit growth CM and RM
Credit growth CM and RM 12-month credit growth corporate market 12-month credit growth retail market 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% -5% -5% 2011 2012 2013 2014 Q1/2015 2011 2012 2013 2014 Q1/2015 HSB Helgeland corp. Statistic Norway corp. HSB Helgeland pers. Statistic Norway pers. Commentary 12
Slide 20: Lending CM
Lending CM Lending distributed in sector Commentary Good diversification in the CM Real estate 12 % lending portfolio and very loyal 13 % corporate customers Farming and forestry 06 % 06 % Construction and power 04 % Total share and CM 32,7 04 % 03 % (34,5) % Transport and services Industry Food 03
Slide 21: Non-performing and other impaired commitments
Non-performing and other impaired commitments Net defaulted and com. exp. to loss Commentary 200 Good portfolio quality Flattening of net non- 150 performing and other impaired commitments 100 The development of defaults in the portfolio and on individual 50 1,0 % commitments is monitored 0,5 % 0,6
Slide 22: Deposits
Main features Profit & loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 22 En drivkraft for vekst på Helgeland
Slide 23: Total deposit growth
Total deposit growth Commentary 12-month deposit growth Good deposit growth 20% • 12-mont growth 6,5 (14,4) RM Helge 61,8 % CM land Norway % 38,2 % 7,5 % 91,7 % 15% RM share • Per Q1 61,8 (60,8) % 10% Share from Helgeland region 5% •Per Q1 91,7 (91,9) % Deposit ratio 0% • Goal minimum 60 % • Per Q4
Slide 24: Deposits CM and RM
Deposits CM and RM 12-month deposit growth corporate market 12-moth deposit growth retail market 35% 20% 30% 15% 25% 20% 10% 15% 10% 5% 5% 0% 0% -5% -5% 2011 2012 2013 2014 Q1/2015 2011 2012 2013 2014 Q1/2015 HSB Helgeland Corp. Statistic Norway Corp. HSB Helgeland pers. Statistic Norway pers. Comme
Slide 25: Deposits CM
Deposits CM Commentary Customer deposits Well diversified deposit Municipalities 12 % portfolio in the CM 11 % Transport and services 07 % 06 % Share CM 38,2 (39,2) % of 06 % total deposits Construction and power 05 % Real estate 04 % Food Deposits from municipalities 03 % Industry 17 % 17 % Service
Slide 26: Funding
Main features Profit & loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 26 26 En drivkraft for vekst på Helgeland
Slide 27: Funding
Funding Commentary Funding development (MNOK) 25.000 The deposits are the most important source for funding 20.000 The bank’s mortgage company is rated ‘Aaa’ and will be an 15.000 important source for funding in the time ahead 10.000 12.989 13.952 5.000 9.883 10.429 11.211 8.615 9.100 0 2008 2009 20
Slide 28: Funding
Funding Commentary Maturity of loans (MNOK) Good and long term funding 2.500 Share long term funding 2.000 83,7 (81,7) % 500 630 Combined duration of 2,5 (2,5) 1.500 285 years. Duration in the mortgage company increased 1.000 to 3,0 years 400 471 1.500 1.400 1.400 Maximum limit for transferring 500
Slide 29: Helgeland Boligkreditt AS
Helgeland Boligkreditt AS Commentary LTV-allocation 31.03.15 Combined LTV 52 (52) % 76 ≥ 10% Cover pool • qualified loans MNOK 3.982 71-75 9% (4.215) • Deposits MNOK 215 (234) 61-70 21% • OC level 20 (23) % CB loans 3,5 bn. (whereby 51-60 20% 0,4 in the ownership of the parent bank) 41-50 16% Net pr
Slide 30: Liquidity buffers
Liquidity buffers Securities distributed in sectors Commentary 29% The liquidity buffers constitute 3,9 CB 1 36% (4,3) bn. – equal to 15,2 (16,8) % 26% Finance, Norway 19% of total assets Government 19% 18% The buffer capital consists of Municipalites 11% cash, deposits in Bank of 18% 4% Norway/bank
Slide 31: Solidity
Main features Profit & loss Balance Lending Deposits Funding Solidity Summing Helgeland Appendices 31 En drivkraft for vekst på Helgeland
Slide 32: Capital ratio
Capital ratio Commentary Development capital adequacy Capital ratio 20% • CET1 14,6 (12,2) % • Core capital 16,0 (13,8) % 18% • Total capital 18,1 (15,9) % 2,1 % 16% Unrealized profit full effect in Q1 1,5 % 2015 14% • 1 %-point increase in core capital on 0,6 %-points in total 12% capital 14,6 % •
Slide 33: HELG – largest owners
HELG – 20 largest owners Per 31.03.15 Numbers % Numbers % Sparebankstiftelsen Helgeland 6.599.598 35,3 % Helgeland Kraft AS 340.494 1,8 % Pareto AS 1.070.836 5,7 % Bergen Kommunale pensj. 300.000 1,6 % UBS AG, London Branc A/C 1.000.000 5,3 % Verdipapirfondet Pareto 269.000 1,4 % Merrill Lynch Prof.
Slide 34: EC development and liquidity HELG
EC development and liqidity HELG The price for HELG per 31.03.15. was NOK 56,50 per EC. This is an increase of NOK 1,50 since year end. 34 En drivkraft for vekst på Helgeland
Slide 35: Summary
Main features Profit & loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 35 En drivkraft for vekst på Helgeland
Slide 36: Prospects and priorities
Prospects and priorities Profitable growth and leading bank in Helgeland • Close teamwork with Mo og Omegns boligbyggelag and Mosjøen boligbyggelag and co localization with new market leading real estate agencies gives increased access to new mortgage customers • High outward activity and focus on w
Slide 37: Prospects and priorities
Prospects and priorities Result • Still good basis operation, but lower growth in the corporate marked will challenge the net interest rate • The level of provision income is expected continued • Good results in the production companies Frende and Brage will eventually give owner returns • Challenge
Slide 38: Helgeland
Main features Profit & loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 38 En drivkraft for vekst på Helgeland
Slide 39: Property price development
Property price development Price development - sold houses in MNOK/sq.m. Price development - sold apartments in NNOK/sq.m. 60.000 60.000 50.000 50.000 40.000 40.000 30.000 30.000 20.000 20.000 10.000 10.000 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2006 2007 2008 2009 2010 2011 2012 2013 2014
Slide 40: Helgeland – Value creation
Helgeland – Value creation Value creation per sector: Helgeland (14,8 The value creation was 54,3 bn. in Nordland in bn.) 2014. 6000000 That is an increase of 5,3 5000000 % from 2013. Vesterålen 4000000 15 % 3000000 Value creation per traded Helgeland 30 % 2000000 100 NOK in Nordland is Lofoten 1000
Slide 41: Profitability per region
Profitability per region (operating profit in % of turnover) 10,0 8,8 8,6 The companies in Nordland 9,0 8,4 8,2 7,7 8,0 7,8 Has an operational margin 8,0 7,5 7,4 6,8 of 8% in 2014. 7,0 6,5 6,4 6,6 6,5 6,0 6,3 6,0 As a comparison the 5,0 national average was 6,7 4,0 %. 3,0 2,0 Helgeland region’s prof
Slide 42: Growth in turnover
Growth in turnover Index turnover where 2005 =100. 220 Compared to Norway, the 210 companies has a stronger 200 turnover growth in 190 Nordland both in 2013 Helgeland 180 and 2014. The main part Salten 170 of the explanation is Ofoten 160 increased turnover in 150 Lofoten aquaculture and fisheries 1
Slide 43: Prospects
Prospects The Helgeland region • Relatively good economic prospects in 2015 despite of weaker cycles and lower oil investments • High activity in the construction sector • Investment willingness and a good growth potential in the export companies • Extraction of gas and new founding's in Aasta Hanst
Slide 44: Thank you for your attention!
Thank you for your attention! EN DRIVKRAFT FOR VEKST 44 En drivkraft for vekst på Helgeland
Slide 45: Appendices
Main features Profit & loss Balance Lending Deposits Funding Solidity Summary Helgeland Appendices 45 En drivkraft for vekst på Helgeland
Slide 46: A driving force for growth on Helgeland
A driving force for growth on Helgeland Norway's 12th biggest saving bank of 108 banks – 15 offices in 13 municipalities in Helgeland Bank total assets of NOK 26 billion and a market share of over 50 % • An independent regional bank with no alliances and quoted on the stock exchange - The only ban
Slide 47: Business development and ownership
Business development and ownership 100 % 7,9 % Gavestiftelse 34 % 7,5 % Egenkapitalbeviseier 48 % 10,0 % 47 En drivkraft for vekst på Helgeland
Slide 48: Business development and ownership
Business development and ownership Board of Directors Assistant and GM Internal Auditor Helgeland Boligkreditt AS Chief Executive Marit Jakobsen Brit Søfting Officer Lisbeth Flågeng Director of Director of Chief Financial Chief Business Chief Human Chief Chief Risk Corporate Retail Market Officer De
Slide 49: Contact information
Contact information Head office Board of directors Postal address Postboks 68, 8601 Mo i Rana Ove Brattbakk, leder Visiting address Jernbanegata 15, 8622 Mo i Rana Stein Andre Herigstad-Olsen, nestleder Phone number 75 11 90 00 Eva Monica Hestvik Web www.hsb.no Bjørn Audun Risøy Organization number